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1 Confidential. This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation's express consent. © 2013 Fair Isaac Corporation. FICO: Make Every Decision Count ™ Elena Koneva

2 © 2013 Fair Isaac Corporation. Confidential. 2 2 FICO delivers superior predictive analytic solutions that drive smarter decisions. Thousands of businesses worldwide, including 9 of the top 10 Fortune companies, rely on FICO to make every decision count.

3 © 2013 Fair Isaac Corporation. Confidential. 3 3 Transforming Decision Management Sharpen customer-centric decisions Predict customer needs and behavior Pinpoint best offer and action PREDICT Increase customer profitability Reduce losses from fraud and risk Connect all decisions about a customer PROFIT ADAPT Change faster and respond flexibly Automate and change decisions faster Create a test-and-learn culture IMPROVE Continually improve strategy performance Model decisions for greater control Optimize strategies to grow faster

4 © 2013 Fair Isaac Corporation. Confidential. 4 PREDICT to Sharpen Customer-Centric Decisions Predict customer behavior FICO analytics and scores tell you: »Each customer’s profit potential »Each transaction’s fraud risk »Each consumer’s claims risk »Each consumer’s credit risk »Each consumer’s product needs Pinpoint the best offer and action FICO optimization tells you: »Which offer to make – and when »Which collections action will maximize return »Which transactions to review for fraud »How much credit to offer customers Uses FICO analytics to provide customers with individually unique offers at the point of sale Analytics determine not only which offer but when to make it eValues offers receive up to 50% response “With FICO predictive analytics and optimization, we can take into account a member’s full data to maximize offer relevancy and profitability.”

5 © 2013 Fair Isaac Corporation. Confidential. 5 PROFIT More from Each Customer Reduce losses from fraud and risk »Make credit offers based on a precise assessment of risk »Forecast changes in risk when economy changes »Stop fraud in real time using neural networks and patented profiles Connect all decisions about a customer »Build a centralized decision center for multiple channels and products »Apply learnings across the customer lifecycle – marketing, originations, customer management, collections and fraud Uses FICO ® Falcon ® Fraud Manager to detect and stop fraudulent activity for credit, debit, card-not-present and online transactions Online fraud: losses reduced 88% in 6 months; attempts cut by 50% Debit card fraud: reduced by 70% the first year Credit card fraud: reduced from 100 basis points to 9 ‒ a 91% drop “We can now authorize transactions with a tight control over fraud risk, which has played a key role in improving our service to both cardholders and merchants.”

6 © 2013 Fair Isaac Corporation. Confidential. 6 ADAPT Faster Automate and change decisions faster »Automate more decisions to increase speed and consistency while reducing costs »Give business users the power to change decision logic without waiting for IT programming »Contact customers instantly through their preferred channel to maximize effectiveness Create a test-and-learn culture »Test multiple strategies in live performance with champion/challenger testing »Rapidly create and launch new strategies based on new learnings Created a claims management service with FICO business rules management, enabling faster decisions and changes to decision logic Policy enrollment time cut from 22 days to less than 6 minutes 70% of applications do not require manual intervention Rule maintenance by Aviva employees reduces IT costs by 20% “FICO ® Blaze Advisor ® has transformed our business and we’re delighted with it. It has delivered double-digit improvements and it is now a key component in our SOA.”

7 © 2013 Fair Isaac Corporation. Confidential. 7 IMPROVE Strategy Performance Model decisions for greater control »Identify the decision drivers and the effects of every action »Use the decision model as a planning tool to test changes in the business environment Optimize strategies to grow faster »Create analytically derived strategies to meet specified business objectives »Design strategies with millions of variables – instantly Uses FICO optimization software to create analytically driven decisions on fleet distribution and utilization Deployed across every key market in continental Europe Benefit estimated at $19 million “FICO ® Xpress tells us, for example: On Friday morning, bring only four cars from Heathrow to Mayfair, and bring another four from Stansted Airport. The utilization of our fleet has gone up by one or two percentage points.”

8 © 2013 Fair Isaac Corporation. Confidential. 8 8 More Profitable Decisions Across the Lifecycle Decision AreaChallengeSample Client Results Marketing Make the right offer at the right time to build profitability 50% increase in offer responses Originations/ Underwriting Book more customers without increasing risk 15% increase in customers booked while keeping risk exposure constant Customer Management Increase customer and portfolio profitability 30% increase in profit per account 25% decrease in bad debt Collections Collect more without additional resources 30% increase in collector productivity Fraud Stop fraud faster while reducing “false positives” 50% decrease in fraud losses without impacting customer experience

9 © 2013 Fair Isaac Corporation. Confidential. 9 FICO: Game-Changing Analytics First commercially available credit scoring systems First automated origination systems with analytics First cross- bureau credit scores First small business scoring systems First neural network-based fraud solutions First cardholder profiling for fraud First cross- bureau credit scores First small business scoring systems First neural network-based fraud solutions First cardholder profiling for fraud First insurance underwriting scoring systems First adaptive control systems for managing card accounts First insurance underwriting scoring systems First adaptive control systems for managing card accounts First credit line optimization solutions First predictive systems for insurance fraud First analytic systems for retailers to optimize offers First adaptive analytics for fraud First credit capacity scores First score for prescription adherence First credit line optimization solutions First predictive systems for insurance fraud First analytic systems for retailers to optimize offers First adaptive analytics for fraud First credit capacity scores First score for prescription adherence 1960s1970s1990s 1980s2000s FICO holds 110+ patents in analytic and decision management technology, with 100+ patents pending We are pioneers at transforming Big Data into insights that drive smarter decisions

10 © 2013 Fair Isaac Corporation. Confidential. 10 © 2013 Fair Isaac Corporation. Confidential. 10 We Work with the Most Successful Businesses IndustryClients IncludeClient Sample Banking More than half of the top 100 banks Insurance Two-thirds of the top US P&C insurers Retail/ Consumer Goods One-third of the top US retailers Health Care/ Pharma 7 of the top 10 pharma companies Government 100+ government agencies

11 © 2013 Fair Isaac Corporation. Confidential. 11 We Apply Analytics and Decision Management to Top Industry Challenges »Banking Build Portfolio Value, Profitability, and Lower Risk Boost marketing effectiveness Optimize fees and terms Increase cross sell Build customer loyalty Remediate delinquent loans Manage collectables Fight fraud at every turn Build capital strength »Insurance Improve Results for P&C, Health and Life Insurance Recruit best customers Improve Underwriting pricing Manage risk effectively Meet regulatory compliance Process claims efficiently Cut fraud losses Manage payment integrity Retail/ Consumer Goods Drive Retailer Profitability and Growth Understand customer’s “next move” Catapult marketing performance Improve customer experience Optimize merchandising effectiveness Build profits while managing risk »Health Care/ Pharma Impact the Bottom Line for Health Care and Pharma Drive member recruitment Increase pharma adherence Boost wellness program effectiveness Stop fraud, waste and abuse Manage provider engagements Grow amid regulatory constraints »Government Manage Complexity at National and Local Agencies Improve HR processes Manage risk for credit lending Improve collections effectiveness Optimize operation Manage collections Create opportunities with rules-based systems

12 © 2013 Fair Isaac Corporation. Confidential. 12 © 2013 Fair Isaac Corporation. Confidential. 12 ToolsSolutionsScoresToolsSolutions Building an Analytic Advantage Business Intelligence Business Intelligence Descriptive Analytics Descriptive Analytics Predictive Analytics Predictive Analytics Decision Optimization Summarize Past and Current Behavior Automatically take the ideal action on each individual Target each decision to a customer’s future behavior Make different offers to groups of customers Understand the trends in the business Predict Future Behavior and Adapt

13 © 2013 Fair Isaac Corporation. Confidential. 13 © 2013 Fair Isaac Corporation. Confidential. 13 Profile The leader in predictive analytics for decision management Founded: 1956 NYSE: FICO Revenues: $676 million (fiscal 2012) Products and Services Scores and related analytic models Analytic applications for risk management, fraud, marketing, mobility Tools for decision management Clients and Markets 5,000+ clients in 80 countries Industry focus: Banking, insurance, retail, health care Recent Rankings #1 in services operations analytics (IDC) #6 in worldwide analytics analytics software (IDC) #7 in Business Intelligence, CPM and Analytic Applications (Gartner) #26 in the FinTech 100 (American Banker) Offices 20+ offices worldwide, HQ in San Jose, California, USA 2,400 employees Regional Hubs: San Rafael (CA); San Diego (CA); New York; Roseville, MN; London; Birmingham (UK); Istanbul; Madrid; Munich; Sao Paulo; Bangalore; Beijing; and Singapore. FICO Snapshot

14 © 2013 Fair Isaac Corporation. Confidential. 14 FICO Gives Businesses an Analytic Advantage “By tracking data on how people have acted in the past, FICO can provide valuable predictive models to companies on how consumers will act in the future.” The Atlantic, March 2011 “FICO is the global leader in fraud neural networks and specializes in decision management tools.” TowerGroup, Forever Fighting Fraud, Part 2: Leading Technologies for Authorizing Card Not Present Transactions (Brian Riley, May 2011, # V67:05K) “With the FICO front-office credit risk solution, banks do not have to make the choice between using robust underlying horizontal technology and having tools and applications pre- configured for the unique needs of the industry.” Ovum, Solution Guide to Credit Risk Management in Banking, January 2011, OI

15 © 2013 Fair Isaac Corporation. Confidential. 15 Clients worldwide

16 © 2013 Fair Isaac Corporation. Confidential. 16 FICO Drives Benefits Across Industries »Banking »More than Half of the Top 100 Banks Globally »Insurance »Two Thirds of the Top US P&C Insurers Retail/ Consumer Goods »One Third of the Top US Retailers »Health Care / Pharma »8 of the Top 10 Pharma Companies »Government »100+ Government Agencies

17 © 2013 Fair Isaac Corporation. Confidential. 17 FICO Capabilities Serve Each Industry »Banking Build Portfolio Value, Profitability, and Lower Risk Boost marketing effectiveness Optimize fees and terms Increase cross sell Build customer loyalty Remediate delinquent loans Manage collectables Fight fraud at every turn Build capital strength »Insurance Improve Results for P&C, Health and Life Insurance Recruit best customers Improve Underwriting pricing Manage risk effectively Meet regulatory compliance Process claims efficiently Cut fraud losses Manage payment integrity Retail/ Consumer Goods Drive Retailer Profitability and Growth Understand customer’s “next move” Catapult marketing performance Improve customer experience Optimize merchandising effectiveness Build profits while managing risk »Health Care/ Pharma Impact the Bottom Line for Health Care and Pharma Drive member recruitment Increase pharma adherence Boost wellness program effectiveness Stop fraud, waste and abuse Manage provider engagements Grow amid regulatory constraints »Government Manage Complexity at National and Local Agencies Improve HR processes Manage risk for credit lending Improve collections effectiveness Optimize operation Manage collections Create opportunities with rules-based systems

18 © 2013 Fair Isaac Corporation. Confidential. 18 © 2013 Fair Isaac Corporation. Confidential. 18 ResultClientThey Say: Profitability “With FICO predictive analytics and optimization, we can take into account a member’s full data to maximize offer relevancy and profitability.” Loyalty “We’ve made tremendous performance and customer service improvements.” Agility “Working with FICO has enabled us to respond in an interactive, integrated way to the business challenges we face in a truly diverse, increasingly complex world.” Speed “Speed to market was one reason we chose FICO.” Growth “FICO technology has more than fit the bill in terms of managing the dynamic growth in our credit card business.” Security “We welcomed the opportunity to work with the DoD in establishing effective fraud detection and prevention practices.” Protection “FICO’s IFM technology has met our corporate goal of delivering a true predictive modeling solution in our efforts to identify potential fraud, waste and abuse.” We Give Leaders the Results They Demand

19 © 2013 Fair Isaac Corporation. Confidential. 19 © 2013 Fair Isaac Corporation. Confidential. 19 Performance FICO scores and analytics dig deeper into Big Data to outperform other approaches Performance FICO scores and analytics dig deeper into Big Data to outperform other approaches Why Clients Choose FICO Analytics Innovation 100+ patents for analytic technology, applied to real-world applications Innovation 100+ patents for analytic technology, applied to real-world applications Experience 50+ years applying analytics to multiple challenges, dealing with operational issues, legal issues and regulations Experience 50+ years applying analytics to multiple challenges, dealing with operational issues, legal issues and regulations Complete Solutions Analytics integrated into complete solutions to deliver higher ROI Complete Solutions Analytics integrated into complete solutions to deliver higher ROI

20 © 2013 Fair Isaac Corporation. Confidential. 20 © 2010 Fair Isaac Corporation. FICO Solution: Enhanced 360 Degree Risk View 1.Risk View -Risk Today of default Specific range of FICO ® Scores 4.Other Views -Propensity to consume &FICO ® Score Service FICO ® Economic Impact Index 3.Macro View -Sensitivity to changes in market FICO ® Credit Capacity Index ™ 2.Opportunity View - Capacity to manage more credit Ascertain future value & ability to take manage additional debt Determine risk of repayment for lifecycle lending, setting rates & controlling loss Assess market performance - competitive position and usage of facility Quantify economic impact on credit risk

21 © 2013 Fair Isaac Corporation. Confidential. 21 © 2013 Fair Isaac Corporation. Confidential. 21 World’s #1 credit bureau score, the FICO ® Score 100 billion sold to date Powers 10 billion+ decisions a year 70,000+ businesses rely on FICO ® Score Used by rating agencies and secondary market to improve risk assessment, transparency Delivered through Biroul de Credit from 2008 High predictive power and stability World’s #1 credit bureau score, the FICO ® Score 100 billion sold to date Powers 10 billion+ decisions a year 70,000+ businesses rely on FICO ® Score Used by rating agencies and secondary market to improve risk assessment, transparency Delivered through Biroul de Credit from 2008 High predictive power and stability Leadership: Credit Scoring “Your FICO ® Score is the No. 1 piece of data to determine how much you’ll pay on a loan and whether you’ll get credit.” US News and World Report

22 © 2013 Fair Isaac Corporation. Confidential. 22 © 2013 Fair Isaac Corporation. Confidential. 22 Leadership: Business Rules Management FICO ® Blaze Advisor ® system recognized as the most sophisticated, flexible rules management system First business rules management system to offer support for Java, Microsoft.NET, COBOL and other platforms Simple Structured Rule Language makes it easier for business users to manage rules Support for Predictive Model Markup Language streamlines integration of analytic models with rules Available in major European and Asian languages Core component in FICO’s Decision Management architecture FICO ® Blaze Advisor ® system recognized as the most sophisticated, flexible rules management system First business rules management system to offer support for Java, Microsoft.NET, COBOL and other platforms Simple Structured Rule Language makes it easier for business users to manage rules Support for Predictive Model Markup Language streamlines integration of analytic models with rules Available in major European and Asian languages Core component in FICO’s Decision Management architecture “The Blaze product roadmap indicates a host of new capabilities that will break new ground in the BRMS market and should rekindle the competitive spirit that has been missing from the BRMS market in recent years.” IDC, Worldwide Business Rules Management Systems Forecast and 2010 Vendor Shares, Doc # “The Blaze product roadmap indicates a host of new capabilities that will break new ground in the BRMS market and should rekindle the competitive spirit that has been missing from the BRMS market in recent years.” IDC, Worldwide Business Rules Management Systems Forecast and 2010 Vendor Shares, Doc #229182

23 © 2013 Fair Isaac Corporation. Confidential. 23 © 2013 Fair Isaac Corporation. Confidential. 23 Leadership: Regulators & Policy Leaders »For many years FICO has offered technical assistance to all banking agencies (OCC, Fed, FDIC, CFPB, OSFI) on credit scoring matters »FICO has regularly provided multi-day FICO credit scoring training to bank examiners, most recently for the OCC (Fall 2012) OSFI (Spring 2013) »FICO has an ongoing dialogue with FDIC, Federal Reserve and CFPB on consumer financial education issues related to credit scores »Presented latest quarterly study findings of credit risk professionals to Council of Economic Advisers »FICO is a partner with University of Missouri FTC research study on credit report accuracy and completeness »FICO has testified before Congressional and State House Subcommittees on credit score related issues for banking and insurance industries »FICO has started meeting with FSA/Bank of England and EU regulators on risk model development and governance, Basel III capital allocation assessments and international portfolio alignment and calibrations

24 © 2013 Fair Isaac Corporation. Confidential. 24 C HALLENGE  Macroeconomic conditions affect consumer risk  How do forecasts translate into actionable information at the account level?  How do forecasts apply to portfolio level analysis? Economic Impact Index in Summary S OLUTION  EII provides an adjusted FICO risk score based on up-to-date macroeconomic forecast scenarios, driven by Analytics  Translates market direction into actionable metrics for account decisions, strategy adjustments, and portfolio analysis B ENEFITS  Limit losses by tightening credit policies during downturn  Grow portfolio responsibly as markets recover  Better prepare for the future by quantifying the impact of future macroeconomic conditions on portfolio performance

25 © 2013 Fair Isaac Corporation. Confidential. 25 © 2013 Fair Isaac Corporation. Confidential. 25 Leadership: Banking Risk Management Leading credit management system: FICO ® TRIAD ® Customer Manager Manages 65% of card accounts worldwide, in addition to current / deposit accounts and other credit relationships First system to use “champion/challenger” testing to help issuers rapidly evolve strategies Facilitates management at account or customer level, to reduce credit losses and boost account revenues Leading credit management system: FICO ® TRIAD ® Customer Manager Manages 65% of card accounts worldwide, in addition to current / deposit accounts and other credit relationships First system to use “champion/challenger” testing to help issuers rapidly evolve strategies Facilitates management at account or customer level, to reduce credit losses and boost account revenues “Some companies base their decision-making process on account management because they only market one product, and others on customer management because they supply several products. FICO TRIAD has helped us incorporate the data to coordinate account management with customer management and provide a holistic customer view which will help make better decisions and improve business results.” Millennium bcp “Some companies base their decision-making process on account management because they only market one product, and others on customer management because they supply several products. FICO TRIAD has helped us incorporate the data to coordinate account management with customer management and provide a holistic customer view which will help make better decisions and improve business results.” Millennium bcp

26 © 2013 Fair Isaac Corporation. Confidential. 26 © 2013 Fair Isaac Corporation. Confidential. 26 Leadership: Marketing Action Effect modelling Predicts the consumer’s reaction to an action the lender takes Action Effect models are sensitive to actions Provide a dynamic output contingent on input values (e.g. balance given a specific limit amount) Combines predictive characteristics with a particular “action” variable. (e.g. limit amount) Efficient Capital Allocation - Assign credit limits where most likely to be utilized Improve Profitability Projections - Increased accuracy of projected Net Interest Income calculation Action Effect modelling Predicts the consumer’s reaction to an action the lender takes Action Effect models are sensitive to actions Provide a dynamic output contingent on input values (e.g. balance given a specific limit amount) Combines predictive characteristics with a particular “action” variable. (e.g. limit amount) Efficient Capital Allocation - Assign credit limits where most likely to be utilized Improve Profitability Projections - Increased accuracy of projected Net Interest Income calculation

27 © 2013 Fair Isaac Corporation. Confidential. 27 © 2013 Fair Isaac Corporation. Confidential. 27 Leadership: Fraud Leading card fraud system: FICO ® Falcon ® Fraud Manager Protects more than 2.5 billion cards worldwide First use of neural networks in payment card fraud, combined with proprietary cardholder profiles Many clients experience 50% reduction in payment fraud Strong detection and low false-positive rates enable clients to maintain sharp focus on customer experience Large library of segment and region-specific consortium models for quick time-to-value and shared learning across the industry Link analysis and data mining Leading card fraud system: FICO ® Falcon ® Fraud Manager Protects more than 2.5 billion cards worldwide First use of neural networks in payment card fraud, combined with proprietary cardholder profiles Many clients experience 50% reduction in payment fraud Strong detection and low false-positive rates enable clients to maintain sharp focus on customer experience Large library of segment and region-specific consortium models for quick time-to-value and shared learning across the industry Link analysis and data mining “This is simply the best system for a growing bank facing today’s fraud threats.” Absa Bank “This is simply the best system for a growing bank facing today’s fraud threats.” Absa Bank

28 © 2013 Fair Isaac Corporation. Confidential. 28 © 2013 Fair Isaac Corporation. Confidential. 28 Will Lansing Chief Executive Officer Joined FICO 2012 InfoSpace, ValueVision Media, General Atlantic Partners, Fingerhut Mike Gordon EVP, Sales, Services and Marketing Joined FICO 2005 Capgemini / Ernst & Young Stuart Wells EVP, Chief Technology & Products Officer Joined FICO 2010 Sun Microsystems, Avaya Jim Wehmann EVP, Scores Joined FICO 2012 Digital River, Bank One, Fingerhut Mike Pung EVP, Chief Financial Officer Joined FICO 2004 Hubbard Broadcasting, Deluxe Dr. Andrew Jennings SVP, Chief Research Officer Joined FICO 1994 Abbey National, Univ. of Nottingham Mark Scadina EVP, General Counsel Joined FICO 2007 Liberate, InterTrust, Pennie & Edmonds Richard Deal SVP, Chief HR Officer Joined FICO 2001 Arcadia Financial, U.S. Bancorp Experienced Executive Team

29 Confidential. This presentation is provided for the recipient only and cannot be reproduced or shared without Fair Isaac Corporation's express consent. © 2013 Fair Isaac Corporation. Thank you! Elena Koneva


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